© 2023 DEBT-RESET – licensed to Campbell Saunders Ltd. – Licensed Insolvency Trustee | Proudly Built By Integrity Web Services
It is a legal requirement for almost everyone to file an income tax return each year. There are a variety of reasons why some people may not be keeping up with filing their returns, and as the years go by the filings just seem to overwhelming. As time goes by, you may fear that you will owe a large amount to CRA when you do eventually file your returns.
An arbitrary assessment can be seen as an ‘educated guess’ by CRA on what they think your income was – especially for self-employed people. These ‘guesses’ are often a lot higher than the reality (as CRA does not allow for any business expenses). CRA can take further legal action to recover what you owe, or what they think you owe, by garnishing your wages, your accounts receivable, or anyone else who would have some money owing to you. If you own an asset such as a car or home, CRA can register a lien against these assets, making it harder to sell or borrow against. If you sell an asset that has a CRA lien against it, the proceeds would be paid to CRA.
It actually makes it easier to decide how to deal with the debt once you know what the real amount is, if any. Avoiding filing doesn’t stop CRA from taking action!
If there’s an amount owing to CRA and it’s too high to pay, we can refer you to other professionals that can assist you in legally resolving the issue.
Any returns filed after that lose their credit to social programs such as CPP, CCB and GST that may have been available to you. In other words, if your income from 11 years ago would have meant you were eligible for GST credits, you now won’t receive them for that year. You’ll also lose any CPP that your employer from more than ten years ago paid on your behalf.
info@debt-reset.ca